Information Technology
Strada report reveals surge in AI adoption and data-driven HR decisions fueled by HCM transformation
This success is reflected in measurable improvements across HR operations, from greater automation and integration to a stronger reliance on data in decision-making. Key gains include:
Importantly, the report underscores the need to start with the basics. Organizations that achieved the most significant improvements – many of which deployed Workday - began by simplifying processes, adopting best-practice configurations, and building modern operating models. Prior to deployment, only 12% of companies described their HR processes as somewhat easy. Post-deployment, that figure rose to 45% (a 275% increase) with a further 10% describing their processes as significantly easy - a term barely used before implementation. Notably, no company described their processes as very complex after deployment. Levels of automation also improved, with 'mostly automated' processes nearly doubling from 25% to 45%.
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Despite this progress, AI usage remains inconsistent. While AI adoption has surged, 68% of companies say they still use AI and ML only 'rarely' or 'sometimes', limiting the full value of their investment. This gap is often linked to a few persistent challenges - including data security concerns, trust in AI insights, and the need for deeper internal expertise.
Encouragingly, 90% of organizations have already taken steps to enhance digital skills, particularly in emerging areas such as AI and machine learning. While only 4% said they had no skills in this area, 34% described their capabilities as still developing - underlining the need for ongoing learning and development.
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This transformation presents HR professionals with a unique opportunity to reshape their roles, elevate their impact, and lead strategic change within their organizations. As technology continues to redefine the function, those who embrace data, automation, and continuous learning will be best placed to lead the future of work.
To find out more about how HCM transformation is shaping the future of HR, download the full report here: https://news.stradaglobal.com/en-gb/isg-hcm-transformation
Strada is a people, payroll, and technology leader that simplifies international workforce management. Across 180 countries, Strada designs and delivers people first solutions powered by cloud-based technology that help organizations grow and enable workforces to perform at their best. To learn more, visit www.stradaglobal.com
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